Videocon International president Pradeep Kumar Dhoot had recently stated that the group would introduce a Chinese brand of television for Rs 6,000 by September.

According to industry sources, Videocon group is set to launch a brand owned by Hong Kong-based Kong Wah Holdings, a 100 per cent subsidiary of Akai Electric Company. Akai Electric Company, in turn, is 71 per cent owned by Semi-Tech Global, a company incorporated in Bermuda.

Kong Wah owns brand such as Onwa, Kawa and Greatwall, and market sources say, the Videocon group is likely to launch Onwa. When contacted, Videcon director (marketing and sales) N Gupta declined to confirm that the group was extending its alliance with the Semi-Tech group. "We are tying up with one of two largest television manufacturers in China,"was all Gupta was willing to disclose.

Incidentally, Kong Wah is one of the largest television manufacturer in the Far East outside South Korea and Japan. The company earns almost 80 per cent of its revenue from television business. Industry sources say the Videocon would source the moulds for 14-, 20- and 21-inch cabinets from Kong Wah under an agreement between the two company. Other components required for assembly of the television would be sourced from Videocon facilities.

Kong Wah was founded in 1979 and served as original equipment supplier for several brands such as GE, Emerson and Amstrad. In 1995, Akai Electric Company acquired 77 per cent stake in the company, and in the following year, it became to 100 per in the following year. The acquisition enabled Akai to emerge a major player. Kong Wah has manufacturing facilities in low cost areas such Zhongshan and Tranjin in China and Kuala Lampur in Malaysia.

Other group companies of Kong Wah include Hong Kong-based Kong Wah Electronic Enterprisesand China-based Zhongstan Kawa Electronic Group.